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Analysis: Volatility Returns to Cryptoworld after Healthy Rally

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Analysis: Volatility Returns to Cryptoworld after Healthy Rally

Introduction

This article was posted on Wednesday, 15:09, UTC.

Bitcoin at $3500, Ethereum at $300, Litecoin at $50… Those levels were quite far away just a few weeks ago when the broad correction in the segment dragged the major players and the smaller coins lower. Although only BTC hit new highs during this leg higher, given the incredible rise prior to that in the Ethereum ecosystem, one needs to look very close to conclude that Bitcoin is outperforming ETH. That said, the all-time high for Ethereum is still ways off, and the market is likely in for a short-term correction, as the two most valuable currencies both reached overbought territory following the SegWit lock-in for BTC.

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ETH/USD, 4-Hour Chart Analysis

Ethereum spiked above $300 after passing the strong $285 resistance, and it started a choppy consolidation afterward, with the MACD indicator pointing to a correction. Litecoin reached a high above the $50 level for the first time in a month, while Dash, Ripple, and Ethereum Classic also attempted a rally, before retracing most of their gains. Let’s how the majors stand as BTC and ETH are working through their overbought readings.

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Bitcoin

BTC/USD, 4-Hour Chart Analysis

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Bitcoin entered a short-term correction after hitting $3500, and it spiked as low as $3150 this morning although it bounced back to $3300 quickly. The uptrend in the coin is not in danger yet, but more consolidation is likely before another move to new highs. Support levels are found near $3000 and $2900. The long-term picture is also getting close to overbought, and investors should wait for a deeper correction to enter new positions, while traders should still trade with a bullish bias.

Litecoin

LTC/USD, 4-Hour Chart Analysis

Litecoin rallied above $50 as we expected, but it remains below the crucial level after a swift pull-back. The short-and long-term picture remains bullish, and a test of the prior high above $60 is likely in the coming period, with the long-term range projection target still being just below $60.

Dash

DASH/USD, 4-Hour Chart Analysis

Dash bounced off the upper boundary of the current triangle consolidation pattern overnight after spiking to $210. The technical setup is still clearly positive, and a break-out to new highs towards the long-term target at $260 is the most likely major move of the coming period. Primary support is at $190 with further levels at $170 and near $150.

Ripple

XRP/USD, 4-Hour Chart Analysis

XRP hit $0.20 overnight, breaching the declining long-term trendline in the process, before falling back to the $0.18 support/resistance level. The coin remains stuck in the correction pattern, but a move higher is more and more likely, with the crucial resistance zone around $0.22 being the next possible stop for the coin.

Ethereum Classic

ETC/USD, 4-Hour Chart Analysis

ETC moved higher as well overnight, helped by the broad rally, but it also failed to stay above the $0.16 level and the declining trendline, similarly to XRP. As the correction pattern is converging with the base formation around the $14 level soon, the next major move will likely start in the coming week.

Monero

XMR/USD, 4-Hour Chart Analysis

Monero remains among the strongest coins short-term, hovering around the $52, despite reaching overbought territory and starting a consolidation. Support levels are still found at $50, $46, and near $42, while a move towards the prior high at $58 remains likely when the current correction runs its course.

NEM

NEM/BTC, 4-Hour Chart Analysis

NEM turned volatile after bouncing back off the 0.00009 level for the second time. Both the short- and long-term setups look encouraging, and a rally to 0.00010 is likely in the coming days. Strong support is found at 0.000075, and below that near 0.00007.

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Mate Cser

Mate Cser

Trader and financial analyst, with 10 years of experience in the field. An expert in technical analysis and risk management, but also an avid practitioner of value investment and passive strategies, with a passion towards anything that is connected to the market.

Comments
  • user

    AUTHOR dantecz

    Posted on 7:31 pm August 9, 2017.

    You wrote in the previous news, when ETH will be a maximum of 285USD…

  • View Comments (1) ...
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    The price bounced from 2950.00 level and then dropped to…